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Is Pokémon Go Augmented Reality’s Killer App?

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The overwhelming popularity of “Pokémon Go” has the potential to take augmented reality (AR) from the bleeding edge to the indispensable, leading many businesses to step up development of AR applications for consumers and employees.

By now, you have probably heard of “Pokémon Go,” the phenomenon that has swept the U.S. and other countries in the last several weeks, even if you have not played the mobile game yourself. Since its release July 6, “Pokémon Go” has become the most popular mobile game in the U.S., reaching a peak of 25 million daily active users during its second week online, according to “PC World.” In nearly the same amount of time, the game generated $35 million in revenue, according to “VentureBeat.”

The app’s success stems from its exciting and unprecedented use of augmented reality (AR) to blend the real world with the virtual world of gaming. AR overlays digital information, such as text, images, or sound, into a physical environment—often a surface. This allows users to manipulate digital information through their interactions with real-world objects.

In “Pokémon Go,” players use their smartphones to hunt for Pokémon characters as they walk around indoors or outside. When they find the likes of Squirtle, Charmander, or the adorable Pikachu, users can “throw” app-generated virtual Pokéballs at the characters to catch them. Users can also engage in AR battles for “gyms,” creating a wildly addictive gaming experience for adults and kids.

Until “Pokémon Go” arrived, AR did not have a killer app to take it mainstream; previous games that employed the technology only achieved modest success. But the runaway popularity of “Pokémon Go” suggests AR may be entering a new era characterized by applications of the technology that are easy to use and serve a functional purpose beyond entertainment. With “Pokémon Go” raising consumer awareness of and expectations for AR, it may be time for CIOs to give serious thought to how their enterprises could use the technology.

Promising applications of AR have emerged in several sectors. For example, one engineering and construction company is using the technology to give field workers access to design and technical data, while a logistics company uses it for training employees at package-sorting facilities. In health care, a number of AR products have been developed, including AccuVein, a hand-held device that projects an image of a patient’s veins and valves on top of his skin to make it easier for doctors and nurses to administer injections.¹

Even financial services companies have begun experimenting. In 2014, Transamerica Retirement Solutions and Desjardins Insurance rolled out AR apps designed to promote retirement savings. Transamerica’s ART (Augmented Reality by Transamerica®) app brings up retirement planning videos when users point their smartphones at printed advertisements featuring the ART logo. The Desjardins Insurance app works in a similar way. In banking, AR apps dispense discounts for nearby stores, help customers find ATMs and bank branches in busy cities, and allow them to make payments and access their accounts.²

For the most part, financial services companies’ efforts have achieved limited success, partly because the industry has lacked a killer app that excites consumers and encourages mass adoption. As a result, customers have not felt compelled to integrate AR into their banking experience.

But with the enthusiastic embrace of “Pokémon Go” by millions of consumers, especially millennials and younger people, AR applications in retail and institutional banking ought to get a boost. Look for a fair amount of innovation in this space—and perhaps even meaningful improvements in customer experience—in the months and years ahead. If that happens, we’ll likely have “Pokémon Go” to thank for it.

Is Pokémon Go Augmented Reality’s Killer App?

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